NATIONAL ASSOCIATION OF REALTORS

CODE OF ETHICS
Preamble

nder all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment. uch interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS a common responsibility for its integrity and honor. n recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. REALTORS having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS. ealizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, REALTORS urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where REALTORS believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain. he term REALTOR has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral

conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal. n the interpretation of this obligation, REALTORS can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rules, Whatsoever ye would that others should do to you, do ye even so to them. ccepting this standard as their own, REALTORS pledge to observe its spirit in all of their activities and to conduct their business in accordance with the tenets set forth below

expenditures made for their client, without the clients knowledge and consent. When recommending real estate products or services (e.g., homeowners insurance, warranty programs, mortgage financing, title insurance, etc.), REALTORS shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the REALTOR or REALTORs firm may receive as a direct result of such recommendation.

services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. Article 12 REALTORS shall be careful at all times to present a true picture in their advertising and representations to the public. REALTORS shall also ensure that their professional status (e.g., broker, appraiser, property manager, etc.) or status as REALTORS is clearly identifiable in any such advertising. Article 13 REALTORS shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it. Article 14 If charged with unethical practice or asked to present evidence or to cooperate in any other way, in any professional standards proceeding or investigation, REALTORS shall place all pertinent facts before the proper tribunals of the Member Board or affiliated institute, society, or council in which membership is held and shall take no action to disrupt or obstruct such processes. Article 15 REALTORS shall not knowingly or recklessly make false or misleading statements about competitors, their businesses, or their business practices. Article 16 REALTORS shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS have with clients.

Article 7 In a transaction, REALTORS shall not accept compensation from more than one party, even if permitted by Article 1 law, without disclosure to all parties When representing a buyer, seller, and the informed consent of the landlord, tenant, other client as an agent, REALTORS pledge themselves REALTOR s client or clients. to protect and promote the interests of Article 8 their client. This obligation to the REALTORS shall keep in a special client is primary, but it does not relieve account in an appropriate financial REALTORS of their obligation to institution, separated from their own treat all parties honestly. When serving funds, monies coming into their a buyer, seller, landlord, tenant or other possession in trust for other persons, party in a non-agency capacity, such as escrows, trust funds, clients REALTORS remain obligated to treat monies, and other like items. all parties honestly. Article 9 Article 2 REALTORS, for the protection of all REALTORS shall avoid parties, shall assure whenever possible exaggeration, misrepresentation, or that all agreements related to real concealment of pertinent facts relating estate transactions including, but not to the property or the transaction. limited to, listing and representation REALTORS shall not, however, be agreements, purchase contracts, and obligated to discover latent defects in leases are in writing in clear and the property, to advise on matters understandable language expressing outside the scope of their real estate the specific terms, conditions, license, or to disclose facts which are obligations and commitments of the confidential under the scope of agency parties. A copy of each agreement or non-agency relationships as defined shall be furnished to each party to by state law. such agreements upon their signing or initialing. Article 3 REALTORS shall cooperate with other brokers except when cooperation is not in the clients best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.

Article 4 REALTORS shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owners agent or broker. In selling property they own, or in which they have any interest, REALTORS shall reveal their ownership or interest in writing to the purchaser or the purchasers representative. Article 5 REALTORS shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties. Article 6 REALTORS shall not accept any commission, rebate, or profit on

Article 10 REALTORS shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin. REALTORS shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin. REALTORS, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin. Article 11 The services which REALTORS provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate. REALTORS shall not undertake to provide specialized professional

Article 17 In the event of contractual disputes or specific non-contractual disputes as defined in Standard of Practice 17-4 between REALTORS (principals) associated with different firms, arising out of their relationship as REALTORS, the REALTORS shall submit the dispute to arbitration in accordance with the regulations of their Board or Boards rather than litigate the matter. In the event clients of REALTORS wish to arbitrate contractual disputes arising out of real estate transactions, REALTORS shall arbitrate those disputes in accordance with the regulations of their Board, provided the clients agree to be bound by the decision. The obligation to participate in arbitration contemplated by this Article includes the obligation of REALTORS (principals) to cause their firms to arbitrate and be bound by any award.